Yes you can install it there and WIndows 7 will configure the dual boot perfectly. Boot from the Windows 7 DVD and choose Custom install for the Advanced drive tools to format the partition first. You will also want to plug in ethernet so you can stay connected to the internet during install as the installer is so driver
complete it will update itself during install and deliver more in first Windows Updates.
MS funded the WHQL partnership with all manufacturers to build Windows 7 drivers
so they have them first now, unlike before.
When you start up, check the Device manager for any missing drivers: use Driver tab on Device to Update driver, browsing to the Vista Windows/system32/drivers and /driverstore files to find those drivers.
When you are ready to get rid of Vista, you'll want to remove that EISA partition (google for special Diskpart commands) in the prime disk position since it is only able to perform recovery for Vista while Vista is still installed. The MBR will stay in Vista for now, but can be recovered into Windows 7 later using Startup Repair.
People are wanting to bail out of dual boots in hours and days now instead of weeks and months that it took us beta testers. We do many of them each day, and each is its own special puzzle, but doable with about a 90% success rate. Your best bet is a dual boot to acclimate to Windows 7 and transfer files, since you can't easily plug in another HD.
We're here when you are ready to say Hasta La Vista.